XRP Bulls Rattled by 8,900% Liquidation Imbalance Amid Modest Price Dip

In a striking turn of events, XRP futures experienced an extreme liquidation imbalance, with long positions facing an 8,909% higher wipeout than shorts in just one hour. Despite XRP’s price dropping only 2.7%—a moderate dip by crypto standards—bullish traders lost a staggering $980,220, while short positions saw just $11,130 in liquidations, according to CoinGlass.

This massive discrepancy has alarmed market watchers, especially since the broader crypto market saw $240.15 million in total futures liquidations over the past 24 hours. Long positions accounted for over half of that, totaling $126.34 million. While Bitcoin topped the chart with a single liquidation of $4.76 million, XRP ranked among the top three assets by liquidation volume, largely due to this sharp concentration of losses within a short timeframe.

The scale of XRP's long liquidations appears disproportionate to its price action, suggesting that leveraged bulls were overly optimistic. Many traders may have expected a rebound or price stability, only to be caught off guard by the sudden downturn.

This event highlights how sentiment and leverage, rather than fundamentals, can drive sharp market movements. While it’s unclear whether this signals a short-term correction or a deeper shift in market mood, such liquidation spikes often reflect broader concerns about excessive bullish positioning and risk exposure.

As XRP continues to test key price levels, especially following news of the first U.S. XRP ETF and ongoing speculation around Ripple’s leadership and future plans, investors should remain cautious. The sudden imbalance serves as a reminder of the volatility and risk that come with heavily leveraged crypto positions—even when price swings seem relatively modest.